IMC Strategy Assessment

8 August 2016

Coca-Cola Company, the giant in world-wild beverages market, mainly uses the concept planned messages. More details, they use the advertising and public relationship spread their brand image, as well as the related information. In 2011, they built strong momentum toward their 2020 goal of doubling their business over the course of this decade. Since then, “Inspire creativity, passion, optimism and fun” is their main tagline (Coca-Cola, 2011. ). In addition, they did many activities to help coordinated with it, they have made “share a coke” summer campaign to help board the image.

In the traditional one-way communication approach, the company with its dominant hue spreads an enthusiastic and vivid image to consumers. Using young idols as advertising spokesperson, from singers to athletes, Coca-Cola use this method not only made its brand more famous, but also enhanced its sales volume. In addition, from the 5th of March, Coca-Cola launched “The big 100,000 Cash Splash” campaign to make consumers more involved in other products in the company. At the two-way communication approach, consumers have resisted the push of advertising and have built their own barrier.

IMC Strategy Assessment Essay Example

They share experiences through different contact tools, and gather what they need, this give them greater control and influence. 1. 2 Message Effectiveness Critique The dynamic and distinctive message strategy has help Coca-Cola gained many benefits. In order to live passion and positive, the company had tried hard to make a difference in the market. When Coca-Cola launched the “Share a Coke” summer campaign last Christmas, 62,208 virtual Cokes created of which 56,211 were shared, this generated 1,719,227 newsfeed impressions(Burke, J.

, 2011). However, it is obviously that there is less advertising about other types product in this company. 1. 3 Proposed Message Strategy Adjustment Coca-Cola offers about 7 kinds of products in Australian market, include: Energy Drinks, Soft Drinks, Juices etc,. However, it is obviously most of its advertisement are for soft drinks, especially for coke. Therefore, the company should consider adding more in formations about other types to develop more consumers to understand their products broadly. What’s more,

because Coca-Cola Company is the leader in the mark, company should try to do some offers to more values to consumers, they could use service message in its approach, hiring more sales representative to launch campaign and activity to transform some importations which can not get from adverting. 2. 0 Channel Review 2. 1 Channel Integration Grid Factors of Integration TV Print Radio Internet Direct Mail Packaging Sales Staff Logo Logo is integrated well across all elements Tagline Tagline is poorly integrated across media channels. It Is not prevalent on the Internet site, or packaging of the product.

Sales staff were unfamiliar with the tagline when prompted. Corporate Colours Corporate colours are presented well by several kinds of colour for different product types and are consistent across all channel elements. This is strength of the current IMC approach. Message Strategy Message Strategy was coordinate across the majority of elements except the internet site and the direct mail elements, cause both of them are slightly incorrect. Multiple Audience Multiple Audiences are discussed in different channels with the exception of direct mail.

It is because direct mail it is reasonable to assume this would be more focused than traditional medial approaches. And the decrease of usage rate of Radio also made it cannot meet multiple audience. Common Objectives Objectives are coordinated across the majority media elements. Internet And direct mail focus on different elements, relationship rather than awareness, and this could be coordinated better with other communications media. Common Image All elements of image are integrated well expect direct mail. Grid Key High Integration Mid Integration Low Integration 2. 2 Channel Effectiveness Critique

Channel integration grid has give a briefly outline about a number of strengths and weakness in the current IMC commutations approach of Coca-Cola Company. Logo and company colours were highly integrated into media and multiple audiences were largely attained across media types improving value of spend. Strengths of media included TV, print, radio, and product packaging which presented a consistent strategy at all times. The factors for the low integrated was tagline. Because every media channels use different taglines and some of them even can’t be seen during its transform. 2. 3 Proposed Channel Strategy Adjustments

Obviously direct mail is a critical issue for the company that needs to be improved from the IMC mix. Company should consider using direct mail as the basic one, then support with sales promotion, to support others. This would made the promotion not only had a focus but also got more importations under the helps of mass media. The tagline of Coca-Cola is not consistent, use various tagline through its media channels, tagline is very important for build a brand. Providing continuity to a series of advertising and promotion campaign is one of purpose of tagline(Arens, 2006, p425).

Therefore, Coca-Cola should pick only one to use it through out all the media channels. 3. 0 Target Segmentation 3. 1 Geographic Segmentation According to the recent report, New South Wales, Victoria and Queensland are the top three states in Australia which hold the largest population, the preliminary estimated resident population (ERP) of these three states at 30 September 2011 was 7,317,500 persons, 5,640,900 persons, and 4,599,400 persons separately(Australia Bureau of Statistics, 2012). What’s more, these three states are also the hot destinations in tourist market in Australia(Travel Information, 2011).

The liquidity of the large population in these states can help to promote the consumption of the fast-moving products. 3. 2 Demographic Segmentation It is obviously the main consumers of Coca-Cola are generation Y. More specifically, young adult aged 19–24 years are the highest consumers of soft drinks(Hector, D. , Rangan, A. , Louie, J. , Flood, V. , Gill, T. , 2009, p. 5). One of significant characteristic of this generation is uttering fluency and comfort with digital technology(Kotler and Keller, 2006, p. 97). In addition, brand loyalty and economic recession are becoming more and more important among them(PR Newswire, 2010).

3. 3 Psychographic Segmentation Great taste and easy-take are the remarkable advantage of Coca-Cola’s carbonate soft drinks. Considering this, the company should pay more attention on those beverage lovers who also lead a fast life. What’s more, Coca-Cola has developed a new coke called “ZERO”, this soft drink is sweetened with a blend of aspartame, the remarkable feature of “ZERO” is low in calorie, this kind of beverage is specially for those people who want to keep fit, lead a healthy diet and life style(CocaCola, n. d. ).

For carbonate soft drinks were considered to be unhealthy, because they contain too much sugar, high Calorie 3. 4 Behaviouristic Segmentation Behavioristic factors, such as brand loyalties, usage and degree of use, are combine with demographic or psychographic criteria to develop profiles of market segments. According to Nutrition week(2011, p. 41), one-third of young people ate fast food every day. Kolter and Killer(2006, p. 97) declared that for this generation, information from social media plays an important role in their decision-making process, cause 77 percent of them frequent social-networking sites.

Rupert Murdoch describes this young group as ‘digital natives’ because they have grown up in this era and they know nothing else(King, K. , 2006, p. 22). 3. 5 Benefit Segmentation 25% people purchase Coca-Cola because of taste, which account for the most significant part (Gupta, k. , 2009, p. 26), for it provides a specific benefit of great tasty to satisfy with most young people. What’s more, the sales promotion of Coca-Cola, such as discount or its reward strategy also can enhance consumers’ benefit, cause promotions provide consumers with different levels of 3 hedonic benefits (opportunities for value expression,

entertainment and exploration) and 3 utilitarian benefits, include: savings, higher product quality, and improved shopping convenience(Chandon, P. , Wansink, B. and Laurent,G. , 2000). 3. 6 Target Market Description Statement Coca-Cola services a wide range of target markets via its product lines. The key target market of Coca-Cola’s Australian market is described as: Young people, especially those aged 19-24 years old plays an important role in Australian beverage consumption. Theses consumers currently attracted or purchase Coca-Cola are motivated by its tasty, quality, and self-benefit.

They prefer gain information from internet and believe more from social network. They come from a wide range of backgrounds but are unified by a common brand loyalty and willing to build long-term relationship with it. 4. 0 Competitor Profile 4. 1 Competitive Framework There are two competitors in this framework to compare with Coca-Cola, which are Pepsi, Asahi Schweppes. Cause Australian carbonate soft drinks market is fairly concentrated, with the top three players holding 54. 9% of the total market volume, the leading players of the market has presented by these three(MarketLine, 2011).

For the main consumer for Coca-Cola is youth people, so price is chosen as criteria 1 because of their limited economic ability. When it comes to the price factor, Pepsi and Schweppes shares the same unit-price, which is $1. 59/L. However, the expenditure for Coca-Cola has reached $1. 97 per Liter. The noticeable feature of Coca-Cola is its large types of product, it offers 10kinds of Coke, 2kinds of Fanta, 3kinds of Spirite and 1kind of Lift for choose. In Australia, Pepsi has Pepsi 7 UP and Mountain Dew, and includes four bottling plants. 4.

2 Competitor Analysis – Offerings and Communication As the main leaders in the carbonate soft drink market, both Coca-Cola and Pepsi share the similar communication approach. In order to reveal their brand image, both of them has chosen brightly color as their cooperate colors. What’s more, both of them have hired many idols showing in their large mount of advertisements. Unlike other these two companies, the demand for the Cadbury Schweppes brands are scattered and the volume small, the whole activity is regionally driven and has to be taken at a regional level. 4. 3 Completive Advantage

The competitive advantage of Coca-Cola is its image spread. The company focuses more on how to build an in-depth relationship with consumer, and makes them not only get the importations they want to transform instead to consider how to get the largest profit from them. Coca-Cola has popularized its product and brand image in Australian market for many ways to its consumers. 5 Campaign Development 5. 1 Competitive Consumer Benefit Statement The competitive consumer benefits for Coca-Cola’s consumer are its tasty and creative brand image, which can make people special and more energetic.

Coca-Cola put people’s names on its bottles and cans for the first time in its history as part of its ‘Share a Coke’ campaign in last Christmas. They use the power of the first name in a playful and social way to remind people of those in their lives they may have lost touch with or have yet to connect with. They have put names on Coca-Cola bottles so consumers will have fun finding their friends’ and family members’ names and then enjoy sharing a Coke together. This kind of creative activity can help to enhance their brand image. 5. 2 Message Strategy Statement

·For young people especially those between the 19-year-old to 24-year-old, ·Who pursue a colorful and energetic lifestyle. ·Our product are divided into 7 types, include: Juices, Sport Drinks, Energy Drinks etc. The main type of them is soft drinks. ·That provides many kinds for choose, great taste and creative image ·Unlike Pepsiand Asahi, the product line of both of them in Australian market is very small, they can not provided goods for choose, even they cannot fulfilled with your need. ·Our Product cater to good quality and tasty product, also provide with creative experience.

5. 3 Message Strategy Approach According to the conditions has been showed above, brand image can be a suitable strategy for Coca-Cola. Cause there isn’t any significant difference between the various brands of soft drinks. The most important thing that the company need to consider is use advertising to build a strong brand image relevant to target market’s needs. 6. 0 Media Strategy and Testing 6. 1 Company Contacts As the main consumers for beverage are young people, Internet should be suitable media for company to choose as their transform tool.

Based on its current website, more information can be add on the website, such as list the fundamental contents of a beverage to let the consumer make sure that it does not have some harmful materials in it. What’s more, it can cooperate with more website or search engines, for Coca-Cola can launch more advertisement through them. Billboard can be seen easily in Australia. Coca-Cola Company can rent more billboards which are stand near the stations or supermarkets, which can create awareness to remand them to purchase the product.

6. 2 Customer Contacts Social network such as facebook and tiwtter are effective media to gather consumers’ feedback. Because for young people social network has been the main communication tool, they trend to use it to share everything they want, include purchase experience and give feedbacks. Customer service is also an important customer contact point for Coca-Cola. Because those staff send powerful message because they generally personal and occur in real time(Duncan, 250, p. 120).

Coca-Cola need continue hire the young people as staff to reflect their brand image, also they can try to use their own sales staffs in the supermarket to make a better reflection. 6. 3 Intrinsic Contacts The packaging of Coca-Cola is an effective intrinsic contacts, it adds value to products by safeguarding public health, providing product information, minimising breakage, reducing transportation costs, increasing their shelf life, and creating consumer convenience(Coca-Cola,2011). Another media which should be consider is in-store media, for approximately 2/3 of consumers’ purchase decisions are made in the store(Belch and G.

E, 2009, p. 402). Therefore, Coca-Cola should consider about this, to attract more attention from those who are shopping in the store. 6. 4 Unexpected Contact Word-of-mouth has been a powerful unexpected contact, for company cannot expect what kind of information their consumers will spread, and a personal message from someone you know can be more reliable than advertisement. Publicity is another unexpected contact which should be consider, company should pay attention to those factors and try to make it positive to the brand image.

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